The New Elite · Supernova of wealth – History has rarely seen an error where a lot of money has been made by so few people in such a short amount of tie. · Have the rich gotten richer? Poor gotten poorer? · US population grew 33% in the time limit of 1983-2004 · mid 1700s- the wealthiest 1% of Americas likely held 10-20% of the total net worth of the Country · concentration of wealth grew throughout the 1800s · 20th century had 44% net worth · the top 5 percent of Americas own more than the other 95% combined · in 1982, the combined net worth of all 400 people was less than 3 percent of America’s gross domestic product; today it is nearly 10%. · it takes money to make money—misleading, money is self made. -- money makes money, once you have money it is easier to make it · graph on p. 8 · the average American “in the market” (stock market) has about $65000 invested in equities. · It isn’t just money that attracts money; the people who have accumulated money also come to have a greater “pull” on money. · “These days, $1 million might get you a 5000+ square-foot spread with five or six bedrooms in Dallas or Minneapolis, but in New York City or San Francisco, you’d be lucky to get a one-bedroom condo in a nice neighborhood or a two-bedroom condo in an iffier area.” (9)
Today's source of Wealth:
Own business
Someone else’s business
Financial Investments
Real Estate
Inheritance
- 8% of the wealthy came from poverty - 36% of the wealthy came from the middle class o Many of these people don’t use the work successful to describe themselves; a lot of them consider themselves lucky. - Determination + Integrity + (a little luck) = Wealth (getting there) - Many of the wealthy have a hard time separating their business, family and personal lives. o They don’t have enough time in the day to separate the different aspects. o Many say the same keys to success helped them have a successful family and business life. - In a survey, work seemed to be the second highest thing the wealthy focus their time on right after family. - 43% of wealthy agree that, “my dedication to business pursuits has come at the expense of my family life.” - Today the wealthy people like to think of themselves not as rich, but as people who came from modest means, worked hard, and pursued their passions which lead them to achieve some success with the help of a little luck. - 3/4th’s of the wealthy describe themselves as conservative when it comes to spending money even though the have the money to spend. - Only 11% of the wealthy admit to wanting to show off their money to everybody. The other 89% believe in Stealth Wealth, or keeping their money under the radar.
Key’s to success:
Hard work
Perseverance/dedication
Integrity/ treating others well
Luck
Good education
Wealthy top leisure activities:
Going out to eat
Exercising
Go shopping
Go to the moves
Go to a theater/shows/opera/etc
- The wealthy donate roughly $70 billion annually to charity Pg 173: When they asked for what advice they have for the next generation, it is the middle-class values to which they attribute their own success that dominate the list: 1. Work hard 2. Do something you enjoy 3. Have a plan (but stay flexible) 4. Have integrity 5. Obtain education and keep learning - Many studies have shown that people with a compelling vision of what they want from life not only achieve more but also are psychologically and physically healthier than others. - Four- fifths of kids today say it is ‘‘essential for their success’’ that they get into a good college Although the 10-1 chart may be surprising, it makes sense because children of the wealthy have a lot to live up to. ( The added stress/hit home part) Presentation: - Hit home - We are all under the expectations from our parents. Kids are put under stress from their parents because they have the expectation to be as successful as their parents were. We feel the added pressure of performing and living up to the things that our parents did. - Take out a piece of paper, write down 5 things their parents except of them, cross out the ones that you don’t want to do, and the ones you don’t want to achieve with a different color pen. - If you had 5,000 dollars, what would you spend it on? Tell them what the wealthy would spend it on. - Tell them facts about 12 hours a day of work, and taking it home with them, (family who went on vacation). Would they rather have that life style or have the one you do now.
· Supernova of wealth – History has rarely seen an error where a lot of money has been made by so few people in such a short amount of tie.
· Have the rich gotten richer? Poor gotten poorer?
· US population grew 33% in the time limit of 1983-2004
· mid 1700s- the wealthiest 1% of Americas likely held 10-20% of the total net worth of the Country
· concentration of wealth grew throughout the 1800s
· 20th century had 44% net worth
· the top 5 percent of Americas own more than the other 95% combined
· in 1982, the combined net worth of all 400 people was less than 3 percent of America’s gross domestic product; today it is nearly 10%.
· it takes money to make money—misleading, money is self made.
-- money makes money, once you have money it is easier to make it
· graph on p. 8
· the average American “in the market” (stock market) has about $65000 invested in equities.
· It isn’t just money that attracts money; the people who have accumulated money also come to have a greater “pull” on money.
· “These days, $1 million might get you a 5000+ square-foot spread with five or six bedrooms in Dallas or Minneapolis, but in New York City or San Francisco, you’d be lucky to get a one-bedroom condo in a nice neighborhood or a two-bedroom condo in an iffier area.” (9)
Today's source of Wealth:
- 8% of the wealthy came from poverty
- 36% of the wealthy came from the middle class
o Many of these people don’t use the work successful to describe themselves; a lot of them consider themselves lucky.
- Determination + Integrity + (a little luck) = Wealth (getting there)
- Many of the wealthy have a hard time separating their business, family and personal lives.
o They don’t have enough time in the day to separate the different aspects.
o Many say the same keys to success helped them have a successful family and business life.
- In a survey, work seemed to be the second highest thing the wealthy focus their time on right after family.
- 43% of wealthy agree that, “my dedication to business pursuits has come at the expense of my family life.”
- Today the wealthy people like to think of themselves not as rich, but as people who came from modest means, worked hard, and pursued their passions which lead them to achieve some success with the help of a little luck.
- 3/4th’s of the wealthy describe themselves as conservative when it comes to spending money even though the have the money to spend.
- Only 11% of the wealthy admit to wanting to show off their money to everybody. The other 89% believe in Stealth Wealth, or keeping their money under the radar.
Key’s to success:
Wealthy top leisure activities:
- The wealthy donate roughly $70 billion annually to charity
Pg 173: When they asked for what advice they have for the next generation, it is the middle-class values to which they attribute their own success that dominate the list:
1. Work hard
2. Do something you enjoy
3. Have a plan (but stay flexible)
4. Have integrity
5. Obtain education and keep learning
- Many studies have shown that people with a compelling vision of what they want from life not only achieve more but also are psychologically and physically healthier than others.
- Four- fifths of kids today say it is ‘‘essential for their success’’ that they get into a good college
Although the 10-1 chart may be surprising, it makes sense because children of the wealthy have a lot to live up to. ( The added stress/hit home part)
Presentation:
- Hit home
- We are all under the expectations from our parents. Kids are put under stress from their parents because they have the expectation to be as successful as their parents were. We feel the added pressure of performing and living up to the things that our parents did.
- Take out a piece of paper, write down 5 things their parents except of them, cross out the ones that you don’t want to do, and the ones you don’t want to achieve with a different color pen.
- If you had 5,000 dollars, what would you spend it on? Tell them what the wealthy would spend it on.
- Tell them facts about 12 hours a day of work, and taking it home with them, (family who went on vacation). Would they rather have that life style or have the one you do now.